EFI indicator is a technical indicator. EFI indicator is created to trade especially in forex market. EFI indicator is not a signal generator indicator but it is just a confirmation indicator. You can use other indicators or strategies to combine with this indicator. This indicator can be used by beginners as well as experts as the indicator is very powerful tool to know about the present market conditions. The especial feature about EFI indicator is that it signals you instantly about the market direction. The EFI indicator can be used for scalping and swing trading purposes as well. This indicator is useful when the market has mild volatility not extreme volatile. Therefore, trade only during normal volatile situations by avoiding high impact news.
When you install EFI indicator in your metatrader 4, your chart should look like this:
- EFI indicator
EFI indicator is a histogram that moves in positive and negative territory. When the bars are in positive area, this indicates market is in bullish state. Inversely, when the histogram is in negative territory, this indicates that market is in bearish state. This indicates selling signal.
Buying Conditions Using EFI indicator.
- Market should be up trending.
- The EFI indicator should move to the positive territory from the negative territory.
- Place your long position as soon as above conditions are met.
- Place your stop loss just below the recent swing low.
- Take your profit when the EFI indicator dives into the negative territory.
Selling Conditions Using EFI indicator.
- Market should be down trending.
- The EFI indicator should dive into the negative territory from positive territory.
- Place your short position as soon as above conditions are met.
- Place your stop loss just above the recent swing high.
- Take your profit when the EFI indicator rises to the positive territory.
Download Free Forex EFI Indicator
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